r2i forum

Desi, Bobus
Here's a question from a finance dummy. I wasn't able to come up with clear numbers even after multiple passes thru some of the threads and information.

1 spouce : PR
other spouce and 2 kids : USCs
R2I'd already. out of RNOR period.
Assume Total earned income: 70 K ( should it be gross Indian income or Indian taxable income after considering all income tax deduction provisions like section 80x etc?)
Assume other income (interest etc) : 20 K (Assume none of this is from US)

Can you please help me run a computation for filing US taxes with
a) foreign earned income exclusion
b) foreign tax credit

Thanks.

#599:

Earned (salary) income is gross earned income, not net of India taxes and deductions.

If the couple's worldwide income consists of 70K of foreign earned income (FEI), and 20K in investment income, then with 2 USC kids, the couple can claim about $23K+ in just personal exemptions and standard deduction and the FEI exclusion so that there is no US tax liability. In fact, they can claim some additional child tax credit too. So I see no need for computation.

If the facts are different from above, and you are keen on foreign tax credit computation, there is a thread in the taxes forum on the same. If you want some computation done, I suggest posting an excel sheet with the same and I will be glad to look at it. I am not inspired to do computation on my own.

Thanks Bobus.

I was able to run a calculation now with my own numbers.